tv Taking Stock With Pimm Fox Bloomberg March 21, 2014 5:00pm-6:01pm EDT
>> this is "taking stock" for friday, march 21, 2014. i am pimm fox. today's theme is digital and business footprints. the black phone is trying to hide your digital footprint. it is hack proof. you will meet someone behind the device. and my next guest works with some of the biggest names in washington, d.c.
you will hear his remarks to the obama administration. and we introduce you to huddle house, a company making a business footprints across the united states. let's start in washington, d.c. mark zuckerberg and five other technology executives meeting with president obama at the white house right now. they are talking privacy and government reforms. bloomberg's megan hughes is outside the white house and means me now. what do we know about this meeting? this meeting got underway at 4:00. no sign of them coming out just yet. they have been in there for an hour now. you mentioned facebook ceo mark zuckerberg. also google chairman eric schmidt, reed hastings from netflix, another from dropbox
among others. among those who declined the invitation, marissa mayer, the ceo from twitter. some of the things we're watching -- number one, zuckerberg's growing public frustration with nsa surveillance. we know that he spoke with president obama earlier this month over the phone. he posted of facebook blog post on this issue, saying there needs to be more transparency or people will believe the worst. also the edward snowden revelation that the government was reportedly posing as facebook to get access to people from all computers. the nsa is denying this. we are seeing a much more public mark zuckerberg on us. march 28, next friday, the president will be receiving
recommendations on what to do with all of that bulk metadata. he will be getting that from his administration. he will have to figure out what to do with that. this conversation could shape his decision. you mentioned three executives, among them marissa mayer, did not attend the meeting that the president is hosting? >> yes, and yahoo! was pretty open about that. saying it did not work out with her schedule, it was very last-minute, and saying yahoo! is a company would be front and center. >> not showing up for a meeting with the president. is that normal? if the president wants to chat with you, doesn't it seem like you would make yourself available? >> they do move on a quick timeline. she was amongst with -- she was amongst a group of ceo's who did visit with the president in december. notably zuckerberg was not at that one.
facebook was represented by sheryl sandberg at that meeting. when it comes to twitter, sticking to people over there, they have not been as involved in this issue. i think the people you are seeing show up have really made it a company priority and a very public priority. right, thanks, megan hughes. i know you are following this. we live in the edward snowden air up. it seems the more we speak about news corporations, the more people react to hacking. the black phone was made in response to the hacking revelations. >> i think these snowden case has elevated everyone's environment wee live in. i have been lit -- writing about this for years. you have this environment of prisoners of -- pervasive
surveillance. the snowden revelations have shown that it is far worse than we ever thought. the black phone has been created ofh the express purpose protecting user privacy. it protects your online activity from observation by others. at the content of your phone calls is encrypted so no one can wiretap you. no one else can listen to the phone call except the two people on the phone call. criminals have access to the same technology as the rest of us. the 9/11 hijackers purchased gps receivers to guide their airplanes to their target. gps is a technology developed by the pentagon to guide weapons to their targets. what are we supposed to do? stop selling gps receivers? because of these protocols, we designed them in such a way that we hope, we think, we have reason to think major governments cannot break them.
but there are so many ways to break into phones. we can push back against those with technology tools like black phone and be silent circle products, but we need to do more than that. we need to push back in policy space. we need to change the laws. >> changing the laws. will it happen? are pretty of pgp, good privacy, the most widely encryption service in the world, phil zimmerman. from washington, d.c. i wonder if you could comment on what is your reaction to the meeting taking place at the white house? how come you were not invited, or maybe you were? >> [laughter] i was not invited this time. maybe next time. i was not invited this
time. maybe next time. i'm glad to see a dialogue between the administration and industry because i think industry has suffered from the snowden revelations. has affected -- around the world -- everyone else's view of american companies. is aving said that, phil, possible to make the case that other countries around the world are doing exactly what the nsa is doing? >> yes, they are. all the other major companies intelligence agencies that are engaged in overreach. we found out about hours because of snowden. if there were snowdens in other countries, we would find out about theirs, too. beyour contention would what?
because we have this information we as citizens should be holding the government accountable for the collection and use of this information? >> yes, we should. we should respond to this information by pushing back and andng to rein in the nsa hope that the europeans will press their own governments to do the same. we go ahead and do this even if those hopes do not materialize into reality? >> we are responsible for what happens in the united states. we have a democracy here, or we are supposed to. we should exercise the tools we have in that democracy to try to rein in our intelligence agencies. if we allow this to go on without pushing back, we're going to see our society turn into a synoptic on.
>> phil zimmerman, one of the things you have looked into is the number -- the amount of surveillance going on on a daily basis. the number of computers able to individuals, that power doubles every 18 months. is that accurate? >> across the processing goes down over time. that is moore's law. everymputer power doubles 18 months. whereas the population does not keep up with that. so, you could say that moore's threat to privacy. all of these video cameras have facial recognition software behind them. traffic cameras have optical software,recognition keeping track of where we are driving our cars, our travel, our financial transactions. all of these sources of surveillance information being drawn together and fused into
he joins us on the phone from texas. general hayden, what do you think of corporations such as facebook meeting with the president today, right now, and it seems that their position is the nsa and the exploits of the other a u.s. agencies is hurting their business because they cannot ensure to their crop -- clients that their information is encrypted. >> there are >> layers to that issue. american industry has been terribly unfairly punished by this series of revelations coming out the last 10 months. american industry does not do unless it is compelled by law that other countries do not do in their own circumstances. , i think statistically, other countries demand more of local industries than we
do ours. but is our industry that has been put out there by the snowden revelations and they are unfairly suffering for it. ifphil zimmerman, i wonder you can come in on this topic and describe if there is a negative effect on corporations because of u.s. activities, and as general hayden says, other people do it, too. >> he is right about that. other countries have the ability to coerce their companies by law to cooperate with the government in just about every country in the world. it has hurt our reputation. i think we have to look at the underlying policy aspects of this. to make itve to try so that the nsa cannot ask some much of american companies. seennk that what we have
from the snowden revelations is quite disturbing. it is leading us down the slippery slope towards a -- iillance society, and don't want to live in a society where everything we do is under surveillance. >> general hayden, i wonder if you could speak a little bit the surveillance capabilities of various agencies of the u.s. government continue unchecked, is it possible to ine a permanent state of war which the government would be allowed retroactively to justify its actions? and i do not support the theory that it is unchecked. certainly i hope it never becomes unchecked. it is consistent with united states law. agree is whatould
we are seeing here though is an older structure of law and in that structure of law the technological capacity we have been able to bring to bear has created differences in the way things may have been in the past. those are fair things to talk about. then again, let me tell you -- 9/11, iwas director pre- was hammered to go after three fairly new problem's. one was the threats to the nation were no longer nationstates. they were individuals. number two, we were being overwhelmed by modern communications. targetedr three, communications were absolutely coming gold with innocent communications. those are facts of life. we have to find a way to allow our security services to deal with those facts. if that makes you uncomfortable and you want them to drop back from that, i understand that, -- you do have to wonder and
you have to understand, it may make you more comfortable, but also less state. that is the kind of thing that have to tee up these issues to the american people. do you agreermann, with general hayden that this is a much broader discussion, but one that has to happen and one that is air race -- in a race with technology? it is a conversation that has to happen. it did not happen, unfortunately until the snowden revelations. we have this technology that collects all of this information enmasse. i do not think they should collect all this information. then they promise not to use it unless a court authorizes it. as if theyhis
install video cameras and all of our houses and collected all of the imagery on disks drives at police headquarters and promised not to look at those recordings unless the court authorizes it. we should'veng been consulted on much earlier. there should have been oversight, knowledgeable oversight where people were paying attention, where politicians were paying close attention to it. i think it slipped past them. >> gentlemen, thank you for the conversation. is themmermann, he president and cofounder of silent circle and general michael hayden, former director of the national security agency, now principal with the church opera. coming up, we will talk about your digital footprint. founder of with the a company that makes a product designed to hide your identity online. that is next. ♪
>> this is "taking stock" on bloomberg. i am pimm fox. another perspective on protecting your digital footprint. joining me, the cofounder and chief technology officer of pogo plug. makes a product that uses technology to hide your identity on the internet. you with us. have i wonder if you can describe this -- what is a get to be our?ed t created by the u.s. navy, actually, and open source project that allowed people who
wanted to be protected to be protected. it allowed them to keep their browsing history anonymous, so people wanted to figure out what they were doing could not have all access to what you were doing. >> having said that, does it need to be clarified that just because you happen to be in the united states or a citizen of the united states at your communications are not necessarily fair game for every organization, including the u.s. government? >> they should not be fair game. your communications are supposed to be private between individuals or corporations. they should be protected as our constitution says. unfortunately, that is not always the case. experience, what is the current state of security and privacy when it comes to company to company communications? depends.of it really you are indicating over nana net, which is a public cap switch network.
every person in your network as the ability to see that data. if you're not protecting that data or the endpoints, they know who is talking to who and what's data is flowing. having said that, how do we works?at safeplug how do you know that the u.s. or even a foreign government cannot break in? >> instead of going from one person to another when you send e-mail or a website, it bounces the traffic around through relays. these relays are other volunteers on the internet who have chosen to give a little bit of their bandwidth to of the state where the traffic is coming from and going to. whoo, you have the allies see the world in the same terms, and you also have people with money who see the world in the same terms. because you have backing.
>> we are well-funded. morgan stanley. they are interested to make sure the internet continues to be free and private. >> you have a background as a computer engineer. is there any possibility that the government will get in touch with you as the result of you creating safeplug? >> it is always possible, certainly. one of the ways it is structured is it does not have a central location. dickens -- they can certainly stop us from selling our particular inner nation, because it is an open source project, others good continue on if they so chose. it really does protect your privacy and your rights under the constitution. >> do you use safeplug, brad? >> i use it a lot. it is not just about privacy. it is about anonymity. your data is protected.
>> this is "taking stock" on bloomberg. i am pimm fox. for companies that have large automobiles or trucks, you've got to keep track of them and you have to keep track of those fuel receipts. the new company hopes to make that process a lot easier. joining me the chief executive officer, melissa smith. thank you for being here. talked about where your company is headquartered, in southern maine. you are going to portland, right?
>> that's right. >> companies have fleets of trucks all over the united states. how did you come to be connected with this business? in a are working simplified payment environment. we are working to provide control, at whatever level the fleet user is looking for and we are eliminating complexity. likeu are really large -- the federal government happens to be one of our customers -- they are interested in anything we have got. telling them where the vehicle is that, anything they are purchasing that is unusual. it is a high level of control. we are in the travel industry as well. we did do that. in that case if you went online and booked a hotel room with you would priceline, use a card. we pay all of the hotels on
behalf of them. we are taking a complicated process and making it >>. >> how did you build the payment network? paid actually have a agreement and purchase agreements at 90% of few locations in the united states and australia. it is something we built over a series of years. the part that makes it unique is we are capturing a tremendous amount of data when someone goes helpspe their card that determine where the vehicle is, the type of functionality or purchases they are making. a simplified mechanism to make sure they can reduce fuel costs. >> the name of the company is wex. . guess you should explain why its antecedent was called right express. >> writes.
entering new marketplaces. we went into australia, new zealand, the u.k., brazil. >> they may not have known about your company. well-known within the oil industry. one of our great partners is exxon and we actually just signed a contract with them in europe for the fleet card portfolio that will move into nine countries. when we start moving into those international arenas, we stepped back and said, what is a better brand to take into these industries and markets? we used wex, because that is what our --we used wex, which customers called as. >> what is next? >> one of the places we have been spending a lot of effort is globalization. brazil, the u.k., australia, new
zealand. into thistered relationship with exxon to purchase their fuel car portfolio -- >> in europe. >> in europe. we are in southeast asia. we have business there on our travel platform and that is an area we are expanding as well. >> please keep us up to date. very interesting. melissa smith, chief executive of wex. appreciate it. theheart of the city may be local diner, particularly in new york city. joining me now is the huddle house chief executive. he joins us from atlanta. i confess i have never had a breakfast, but i understand you are open 24 hours a day and you can get breakfast anytime of the day? >> that's right. we are a 24-hour family dining business. you will be happy to know that
we will be in your neck of the woods soon. we signed some deals. we will be in new jersey and long island. you will have plenty of chances enjoy some delicious food. >> tell us about the history of and the menuuse you offer. a 24 hourwe are business. we serve breakfast, lunch, and dinner. you can get your favorite request at a huddle louse or hamburgers at a huddle house or great country fried steak at a hud allows any time of the day. anytime ofdle house the day. we serve a nice indulgent food for our customers. about the, tell us franchisees and how they come to find you and what kind of experience they need. >> we do a lot of our prospecting on the website. a lot of this comes from
referrals as well. many of our franchise partners live in markets where they have restaurants. maybe they had grown up in that area and they want a little family dining restaurant, a place to gather with friends and family. most of our franchise partners have his newest experience. not all of them have restaurants experience. most of them have a passion for people and a passion for food. >> all right. tell me what is on the menu that apt to abt would be eat? >> one of my favorites is the philly cheese steak omelette. it is delicious. one of my new favorites is a burger with mushrooms, swiss, and onions on it. it is part of our bold burger line that is doing very well. wafflet pass up a good with syrup and butter any time either. >> michael, it sounds like there may be room for new menu items. i know that most of the
restaurants are owned by franchisees. you do have >> that are company-owned to test -- you do al that are company-owned to test new items. can you tell us about special items, things that may come and go? >> one of the things customers crave and ask for every year is our stuffed hash browns. two layers of hashbrowns with meat and cheese with gravy on top of it. that is one of the great global items we have. then we have our steakhouse favorites that we serve as well. -- that is one of the great cra veable items we have. we have a great chef. we do work with outside culinary services as well. >> i know i will push the balance here, but let's say someone wanted greek yogurt or turkey bacon.
don't come to the huddle louse, at least not yet? no, you will be disappointed at the huddle louse. we know what our customers want and serve what they want. we are not necessarily following trends. you will not find organic in our restaurants. you will not necessarily find on healthy foods. we are not pushing that healthy food trend either. -- you will not necessarily find foods.hy >> thank you very much for joining us. the chief executive of huddle louse joining us from atlanta. -- huddle house joining us from atlanta. coming up next, we will talk with a high-end realtor. we will see what she has to offer in paris and new york. ever want to speak with your favorite author?
>> all right, my next guest has over 25 years experience in new york city real estate. i can't believe that. she also has an affinity for real estate on a global scale. she's the chief executive officer and founder of one of companies.ury estate thank you for being here. sam put thank you very much -- >> thank you very much for inviting me. >> pinkwater select is not so but about the real estate the trust between a middle person, a broker, and the expand onwant you to how this is a matter of trust. >> very happy to do so. a partnership of
individuals who want to access ind-to-find materials complete discretion. we have compiled the best experts on brands in key global markets and they are sourcing these opportunities for its membership. an example ofbe this? someone is in paris or they own a wonderful, beautiful apartment in paris, but does not want to put it on the market. maybe they do not want someone to know that they are the person selling this, and they would come to you or you are already connected to them because of your experience? >> their art two ways we can sell a property. they can list with a broker locally. we can recommend the very best rocher -- rocher. thing they can do is listed on the exchange. we have something in pinkwater
select that is called the exchange. members can buy and sell in complete discretion. that is a very big value, i find. bethose things that can sold, obviously real estate, but they can also be -- gemstones, we have had people looking for something they could put their plane on, shipping opportunities, beautiful accessories areas -- accessories. >> so really it is not limited to large scale -- well, they probably are large scale relatively speaking, but not limited to large-scale real estate? >> what i wanted to do was create a world where people could come, and they would not think every time i come to this platform i have to buy a property for multimillion dollars. report we are
going to launch. we have something that is more affordable called more treasures. buyle can come on, something without think about it. it is not the vast part of our inventory, but it is there. >> i want you to talk about the experience you have had. i know you were in sotheby's international real estate. i recently spoke with michael gross, the author of a new book. >> i know him well. >> "outrageous fortune," having to do with central park west in manhattan. i wonder, what kind of person -- what is the impetus for wanting to maintain that level of privacy? >> the world has changed. the buyers have changed. i realize that when i was that sotheby's. suddenly from emerging markets and all of these unexpected areas of the world, all of this
wealth was happening. and for whatever reason, political disruptions, people wanted to move their money into safe havens. i formed a global partnership to deal with the fact that these people did not have the correct access, did not necessarily have the right advisors. opportunities for our clients, sold them, took care of them. >> i wanted to mention we have got something -- i believe they selectthe pinkwater sites. >> they are. >> there is a property in greenwich village in new york that is available? >> yes, there is. that is a new development called greenwich lane. the reason i included it is we have 22 markets. we are very proud of that. greenwich village is an extremely desirable part of new york. it has been problematic because there are few properties and they are all rather small.
it opennwich lane -- just a couple months ago. it is already over 50% full. >> is this an international destination? real estate is a local business, but does this for example go to paris, the same kind of thing, the same level of property? >> property in each market is quite different. andbuyers are becoming more more the same. people are becoming more global. they are owning multiple homes. >> particularly at this level of the market, right? >> they can afford it. they want to put their money in assets that will increase. the market historically has increased. it will go down a bit, it will go up more than it was before. >> i know you will have details about this paris property. tell us about this. >> one of the values we are trying to bring is great
information. so, we consider there are opportunity markets out there were people can invest now and their money will increase as the significantly., as we all know because of various lyrical and economic reasons -- political and economic reasons has gone down. things are on the market now for a lot less than they were. the things we have provided you with -- i'm not sure if it is on the screen now -- it was sold in 2008 for more it is on the markets for today. it is an outstandingly beautiful property. people who know paris know that some point, is going to come back. we recommend exploring it. >> we hope you will give us an update. >> we will do that. >> thank you very much, royce pinkwater, the chief executive select.ater
>> all right, it is time for our segment entitled "right place, right time." love ofguest turned her books into a career as a writer. now she is sharing that enthusiasm with booktow riter.com. it allows authors to visit with a few lucky readers, book clubs for example. she is the author of a new novel entitled "you should have known." thank you for being here. >> thank you for having me. >> let's start with bookto
author.com. where did the idea come from? we met with a book group in new jersey. .t was so different in these groups, you can turn to the author on your left and say, what were you trying to do in this book? so manyt, there are writers, so many readers in new york. let's see if this can work. >> this could be something much further than new york. readerse writers and all over the world. >> that is true. there are a few other cities where it is already irking with book groups. withrd -- already working the groups. san francisco, los angeles. the focus right now is on new york and getting our footing here.
>> ok, so what happens? let's say you have a book club. you would like you to come and talk to your book club about her new book "you should have known." what happens? >> it's very easy. writer.com.ookthe you put the time and the date. i see if it works. if it is a match, i let you know. if not -- we are working with groups in new york city and surrounding areas. there is a fee, of course. the fee is $600. we also have something called pop-up groups where we set the date any time in the book and the author and you can find out as an individual income along. the fee for that is $50. >> if you have a very big book club or a dozen members or so on
and you can almost program your own lecture series. >> that is right. and we would love nothing more than to work with book groups on an ongoing basis. we have sections of the author iter that arehewr jewish interest, food, memoirs -- >> who are some of the popular authors? >> right now one of our authors is on the best seller list. debbie steer was just on the today show with her memoir about the sat's. realve carol from the housewives of new york. dziwill.ave carole ra group withop-up book her next week and there are
still spaces for it -- >> you can find out by going to bookthewriter.com? riter.com.w these they are not doing bookstores -- >> yeah, those are not only happening. and on those tours, a great conversation with an author, i can think of anyplace you can have that. even if you were to have christina baker kline come to bookstore and you join the big long line of people, all you have time to say is "i love your work." that is not what you want. haveis an opportunity to christina baker kline in your living room, to answer all the questions that you have. >> thank you very much.
. >> live from pier 3 in san francisco, welcome to "bloomberg west" where we cover the global technology and media companies that are reshaping our world. our focus is on innovation, technology, and the future of business. let's get straight to the rundown. googles aired schmidt meets with president obama to talk about nsa surveillance. and weighing in on the nsa revelations. then we will talk about the wordprocessing app